South Korean E-Commerce Companies Tap Into Luxury Market Amid Recent Slowdown (Yonhap)
SEOUL, Feb. 1 (Korea Bizwire) — South Korea’s e-commerce giants are increasingly venturing into the luxury goods market, seeking new revenue streams amid a slowdown in industry growth over the past few years.
According to industry sources, online retailer Kurly launched a luxury shopping platform in December 2024, offering 990 products from over 30 high-end brands, including Celine, Louis Vuitton, and Bottega Veneta.
While Kurly does not directly purchase and resell these items, the initiative is part of its strategy to explore new business categories beyond food and cosmetics.
“We introduced luxury goods to gauge demand among our members, particularly during the holiday and Lunar New Year seasons,” a Kurly representative said. “Our goal is to enhance convenience for high-spending customers by offering a broader range of products.”
Kurly joins a growing list of e-commerce players—including Coupang, Naver, Lotte ON, SSG.COM, and 11st Street—that have incorporated luxury goods into their platforms.
Industry analysts note that while luxury demand is susceptible to economic downturns, it remains more resilient than other consumer categories, making it an attractive segment for e-commerce firms seeking steady revenue and new customer acquisition.
E-commerce retailers primarily offer more affordable luxury models compared to department stores and flagship boutiques, positioning themselves as an accessible alternative for cost-conscious luxury buyers.
‘On & The Luxury’
Major E-Commerce Players Strengthening Luxury Offerings
Lotte ON has been a key player in this trend, operating its luxury section ‘On & The Luxury’ since September 2022, with an annual sales growth of over 20%.
In November 2024, it introduced ‘Luxury Showroom’, a feature that offers direct shipping from official brand retailers and boutiques in Italy.
“By streamlining the distribution process, Luxury Showroom allows us to offer competitive pricing,” a Lotte ON spokesperson said. “Customers can also access exclusive and hard-to-find products.”
Meanwhile, SSG.COM revamped its luxury section in 2024, enhancing its premium appeal and making it a strategic focus for 2025.
Ooah Luxe
Shifting Luxury Consumer Trends
Industry insiders highlight a growing polarization in luxury consumption. While ultra-high-end jewelry and premium collections continue to thrive in department stores, price-sensitive consumers are turning to e-commerce for entry-level luxury items.
Another driving factor is the rising popularity of emerging ‘new luxury’ brands among younger consumers. In response, 11st Street has been expanding its ‘Ooah Luxe’ section, initially launched in March 2023 with mainstream brands like Burberry, Gucci, and Saint Laurent.
Since 2024, it has pivoted toward contemporary and casual brands, catering to millennials and Gen Z consumers with items priced between 100,000 and 500,000 KRW ($75–$375).
Popular items in this segment include Autry Medalist sneakers (around 100,000 KRW), Longchamp Le Pliage pouches, Comme des Garçons backpacks, and Louis Vuitton Foundation eco-bags (90,000 KRW).
“Consumers are increasingly drawn to unique, design-driven brands that offer exclusivity at a more accessible price point,” said an 11st Street representative.
While demand for high-end luxury remains stable, analysts anticipate shifts in purchasing behavior amid economic uncertainty. “VIP consumers will continue spending, but younger shoppers and budget-conscious buyers will become more selective, prioritizing trends and pricing,” an industry expert said.
With e-commerce platforms doubling down on luxury sales, South Korea’s online retail landscape is evolving, catering to a broader spectrum of luxury shoppers.
Ashley Song (ashley@koreabizwire.com)
